Before you start

Tax residency in Germany (your main or habitual home is here)
Your tax ID (Steuer-Identifikationsnummer) — posted automatically after your Anmeldung
An employment contract so payroll can run Lohnsteuer withholding
A German bank account for salary and any tax refund

Step-by-step

1
Give your employer your Steuer-ID and tax class
Hand your 11-digit Steuer-Identifikationsnummer to payroll. Your tax class (Steuerklasse) — Class I if single, III/V or IV/IV for married couples, II for single parents, VI for a second job — sets how much Lohnsteuer is withheld each month. It affects monthly take-home, not your final tax bill.
Via employerWho: You + employerBefore your first payroll runFree
2
Let Lohnsteuer be withheld automatically
Each month your employer deducts wage tax (Lohnsteuer), plus the solidarity surcharge if you are a high earner and church tax (Kirchensteuer, 8–9% of your income tax) if you registered as a member of a recognised religion. You receive the net amount; nothing else is required from you during the year.
Via employerWho: EmployerEvery payslipWithheld from gross pay
3
Decide whether you must file or want to file
Filing is mandatory in some cases (multiple jobs, sizeable side income, class III/V couples, certain benefits). Even when optional, most single employees file voluntarily because deductions — commute, moving for work, home office, insurance — typically produce a refund. You generally have up to four years to file a voluntary return.
OnlineWho: YouFrom January after the tax yearFree (or ~€30–40 for tax software)
4
File the Steuererklärung via ELSTER or tax software
Submit your return through the tax office's free ELSTER portal or an English-friendly tool (WISO, Taxfix, SteuerGo). The Finanzamt assesses it and pays any refund to your bank account. The mandatory deadline is 31 July of the following year; voluntary filers have far longer.
OnlineWho: YouRefund typically in weeks to a few monthsELSTER free; software ~€30–40

Documents you’ll need

Tax ID (Steuer-Identifikationsnummer)
Annual payslip summary (Lohnsteuerbescheinigung) from your employer
Records of deductible costs (commute, home office, moving, insurance, donations)
German bank details (IBAN) for the refund
ELSTER account or tax-software login

Things most newcomers don’t know

Your Steuerklasse sets monthly take-home, not your real tax bill.

The tax class only decides how much Lohnsteuer is withheld each month; your true liability is computed when you file. A class that over-withholds simply means a bigger refund later, so an unexpected class is rarely a disaster — it is reconciled at year-end.

Source: Make-it-in-Germany (salary, taxes & social security)

Filing a voluntary Steuererklärung usually gets money back.

Even when you are not obliged to file, deductions for commuting, moving for a job, home-office costs and insurance often mean the Finanzamt over-withheld during the year. Most single employees who file voluntarily receive a refund, and you have up to four years to claim it.

Source: Make-it-in-Germany / Bundeszentralamt für Steuern

The headline 45% is a marginal rate — you never pay it on your whole income.

Germany taxes progressively under § 32a EStG: the first ~€12,348 is tax-free, then each band is taxed at a rising rate from 14% to 42%, and only income above roughly €277,826 touches 45%. Your average rate is far below the top bracket you reach.

Source: § 32a EStG (gesetze-im-internet.de)

Church tax is only charged if you register as a member — and it is 8–9% of your income tax.

If you state a recognised religion at your Anmeldung, Kirchensteuer (8% in Bavaria and Baden-Württemberg, 9% elsewhere including Berlin) is added on top of your income tax and withheld via payroll. Declaring no religious affiliation avoids it; you can also formally leave the church (Kirchenaustritt) later.

Source: Make-it-in-Germany / PwC tax summaries

Common mistakes to avoid

Reading your Steuerklasse as your tax rate — it only sets monthly withholding, reconciled when you file
Skipping a voluntary return and leaving an over-withheld refund unclaimed
Not realising church tax was triggered by the religion field on your Anmeldung
Missing the 31 July deadline when you are in the mandatory-filing group (e.g. class III/V couples or side income)
Forgetting that as a tax resident your worldwide income, not just German salary, is in scope

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.